Question: Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.00 = 0.5714; the contract

Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.00 = 0.5714; the contract size is 62,500. At the maturity of the contract the spot exchange rate is $1.00 = 0.6061.

A. The trader has lost $2,500.
B. The trader has lost $6,250.
C. The trader has made $2,500.
D. The trader has made $6,250.

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